Australia is a typical trade country. It does not have the complete industrial system and advanced technology level of developed countries. However, relying on its rich agricultural and mineral resources, it can rank among developed countries, and its per capita GDP is even higher in the world.
In recent years, China has been Australia’s largest trading partner and its exports accounted for 33% of Australia’s total exports.
However, since the beginning of this year, China-Australia relations have been cold. Regarding the Morrison government’s various actions against China that harm China’s legitimate interests, China has adopted many residual value measures, but this is only a warning, a beginning.
Chinese companies withdrew their capital and suffered heavy losses
According to “Australian Financial Insights”, Nanshan Group announced that it would withdraw funds from a local project in Australia, and a project worth 1.9 billion yuan was just like this. Investigating why it withdrew, Nanshan Group also made it clear that it was because some public negative comments had a negative impact on the group’s brand. To prevent the impact from further deterioration, it was necessary to minimize its projects in Australia.
Obviously, the so-called negative comments are caused by the deterioration of the relationship between the two countries. As a Fortune 500 company with extensive influence in China, Nanshan Group will certainly not want to attract fire at this time in order to maintain its brand reputation. But it is not so easy for the Australian government. The start of the project is imperative. However, the current Australian economy continues to decline, and the pressure on the Australian government is enormous.
Nanshan Group’s divestment is not an exception
In September this year, Huawei’s Australian affairs officer stated that Huawei would withdraw 100 million Australian dollars of research and development funds in Australia and lay off a large number of employees. It is worth mentioning that this is not the first time that Huawei has withdrawn its investment in Australia. As early as last year, Huawei withdrew up to 60 million Australian dollars of funds originally used for research and development in Australia. In September of the same year, it shut down research in Melbourne. center.
It can be seen that in this year’s environment, it seems that Chinese companies’ divestment in Australia has become a general trend, and Nanshan Group or Huawei is teaching Australia in its own way.
Australia is purely self-inflicted
Investigating the fundamental reasons for the withdrawal of capital by enterprises among them are all the evil causes that Australia has planted before. Since 2018, most of the projects of dozens of Chinese companies investing in Australia have been delayed or rejected by relevant Australian authorities on the pretext of ambiguous “national security”, including the construction of 5G networks. Not only in the field of economics and trade, Australia has always regarded itself as the “little brother” of the United States, hiding behind the United States and issuing various provocations to China. Some Australian politicians are even more rhetorical and point to China’s internal affairs.
China did not choose to bear with Australia’s evil deeds of “cannibalizing and smashing people’s pots”. It immediately sent Australia a heavy counterattack. However, the United States is already in a quagmire at this time and cannot protect itself. Australia It is like an abandoned child that will be ruthlessly abandoned when it has no value for use. According to Australian media, if the Australian government continues to implement this policy toward China, a greater blow is yet to come. At that time, if you want to restore the mutually beneficial trade relationship, it will not be so simple. Therefore, I advise the Morrison government to wake up as soon as possible, recognize who is the true friend, and make no mistakes.